Keynote Announces First Quarter Fiscal Year 2005 Financial Results

HostReview.com
Wednesday, January 26, 2005; 03:14 PM

Keynote Systems, Inc., (www.keynote.com), The Internet Performance AuthorityŽ, today announced financial results for its first quarter of fiscal year 2005, which ended December 31, 2004.

"During the last six months, we made a change upwards in the scope and size of our business. Our quarterly revenues now are approximately 40% higher than they were a year ago, and our headcount during the same period has gone up approximately 36% from 165 to 225 people," said Umang Gupta, chairman and CEO of Keynote.

Revenue for the first quarter of fiscal year 2005 was $13.6 million, a 12% increase compared to the preceding quarter and a 40% increase compared to the first quarter of fiscal year 2004.

Net income for the first quarter of fiscal year 2005 was $791,000 or $0.04 per diluted share, compared to net income of $1.3 million, or $0.06 per diluted share, for the preceding quarter, and net income of $667,000, or $0.03 per diluted share, for the first quarter a year ago.

Keynote generated cash flow from operations for the first quarter of fiscal year 2005 of $2.8 million. Cash flow from operations was $3.0 million for the preceding quarter and $4.3 million for the first quarter of fiscal 2004. Cash used for purchases of property, equipment, and software totaled $712,000 for the first quarter of fiscal year 2005 compared to $2.3 million for the preceding quarter and $405,000 for the first quarter of fiscal 2004.

Keynote also announced that it is entering into a trading plan with a securities broker, intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934.

The trading plan will instruct the broker to repurchase for Keynote, , in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, up to 2 million shares of Keynote's Common Stock representing approximately 10% of Keynote's outstanding common shares, over a period of twelve months commencing as soon as March 1, 2005.